AUD/USD battles 0.7600 as US dollar rebound gathers steam ahead of CPI
- AUD/USD eyes a sustained move below 0.7600.
- The US dollar comeback alongside yields weighs on the aussie.
- Mixed Chinese data and NAB Survey also remain a drag, focus shifts to US CPI.
AUD/USD is holding the lower ground, eyeing a sustained move below 0.7600, as the US dollar recovery picks up in Tuesday’s Asian trading.
The greenback stages an impressive bounce after the overnight drop, as Treasury yields regain poise amid rising inflation expectations, with investors now focused on the US Consumer Price Index (CPI) release due later on Tuesday at 1230 GMT.
Upbeat US PPI figures combined with the encouraging comments from Fed Chair Powell on the economy have lifted the hopes for a faster post-pandemic recovery. Therefore, the US CPI data will be key to watch, as it may throw fresh light on the strength of the economic rebound.
Meanwhile, the aussie also remains undermined by Australia’s covid vaccine delays, mixed NAB Business Survey and Chinese trade figures for March. The imports in Australia’s biggest export destination surged more than expected in March. However, it failed to offer any respite to the aussie dollar.
The sentiment around the US dollar and yields continue to remain the main market motor ahead of the US data. The US CPI is likely to rise 0.5% in March vs. 0.4% reported in February while on an annualized basis, the inflation gauge is foreseen at 2.5% last month vs. 1.7% previous. The core figures will hold the key.
AUD/USD: Technical levels to consider